PRESS RELEASE Lesotho National Payment Switch (LeSwitch)

What is the Lesotho National Payment Switch?

The Lesotho National Payment Switch commonly known as the LeSwitch is a significant initiative led by the Central Bank of Lesotho in collaboration with the banking sector including Standard Lesotho Bank and other payments service providers. This project aims to establish a National Payment Switch (NPS), which will modernize the country's electronic payments infrastructure. LeSwitch will connect various digital payment systems, including Point of Sale (POS) terminals, Automated Teller Machines (ATMs) and mobile money, consolidating all domestic electronic transactions into a single central hub for authorization and processing. 

What Will the LeSwitch Achieve for Lesotho?

The primary goal of the Lesotho Payment Switch is to enhance the digital payments infrastructure to meet both current and future customer demands. Key achievements include:

1. Real-Time Payments: LeSwitch will facilitate near real-time electronic payments, ensuring that funds are quickly available to recipients.
2. Availability: The platform will operate 24/7, providing continuous access for users.
3. Digital Interoperability: It will enable seamless processing of payments between banks and non-banking entities, simplifying the payment landscape.
4. Physical Interoperability: Users will be able to access ATMs and agents from various payment service providers as needed.
5. Innovation: The LeSwitch will support domestic payment innovations, such as e-commerce gateways and e-government payment integrations 

Overall, the LeSwitch is expected to promote greater financial inclusion by leveraging digital infrastructure to reach underserved populations. Additionally, it aims to drive economic growth through enhanced digital innovation and improved fund availability.

How is the Lesotho Payment Switch Implemented?

The implementation of the LeSwitch occurs in stages. The initial phase, focusing on fast payments, was piloted in October 2022 and officially launched on March 20, 2024. The next phase involves card stream switching for POS and ATMs, currently in testing, with a pilot set for October 5, 2024, concentrating on ATMs. This will be followed by a full rollout for ATMs and POS. 

What the Lesotho Payment Switch Will Not Address

It's important to note that the National Payment Switch is designed exclusively for domestic payments. This means it will only process electronic transactions conducted by Basotho within Lesotho. Cross-border transactions will continue to be handled through existing payment systems and will not be affected by the National Payment Switch.